Alcoa, BHP to sell Integris Metals

CarolynPritchard

SAN FRANCISCO (CBS.MW) -- Alcoa Inc. and Australia's BHP Billiton have agreed to sell Integris Metals to Ryerson Tull for $410 million in cash, plus assumption of $250 million in debt, the companies said late Tuesday.

Integris is a metals service center company formed in November 2001 through the combination of Reynolds Aluminum Supply Company and North America Metals Distribution Inc., the metals distribution businesses of Alcoa and BHP Billiton, respectively. It has about 2,400 employees.

The shareholders' stated strategic intent was to create value through the combination of RASCO and NAMD and then exit the business, when appropriate, as the metals distribution business was not core to either shareholder, Alcoa and BHP said in a jointly issued statement.

"This combination represents a unique opportunity to create an organization with superior operating efficiency and unrivaled service benefits to customers," said Ryerson Tull
RT
Chairman CEO Neil S. Novich in a company statement. "Together, we will offer specialized product expertise in stainless steel, carbon steel, and aluminum, with the ability to service customers across the United States, Canada, and Mexico, plus a substantial processing capability in India."

Ryerson said it expects the acquisition to generate annualized cost savings of at least $30 million within 18 to 24 months.

Shares of Alcoa ended Tuesday's session up 98 cents, or 3.1 percent, at $33.04, while BHP shares added 32 cents, or 1.5 percent, to close at $21.02 on the New York Stock Exchange.

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